Email this page to a friendNew Mexico Exemptions
In general, a debtor may claim exemption of his homestead and certain personal property from attachment or execution or forced sale for the payment of debts.
The homestead, to the extent of $30,000 of every person may be exempt from attachment, execution or foreclosure by a judgment creditor and from any proceeding of receivers or trustees in insolvency proceedings. If the homestead is owned jointly by two persons, each joint owner is entitled to an exemption of $30,000.00. Homestead refers to a dwelling house and land occupied by the debtor or occupied by him although the dwelling is on land owned by another person provided the dwelling is owned, leased or being purchased by the debtor. (42-10-9.)
If the debtor does not own a homestead, he may claim exemptions, in addition to other exemptions, of real or personal property in the sum of $2,000 in lieu of the homestead exemption. (42-10-10.) Personal property which may be exempt from receivers or trustees in bankruptcy or other insolvency proceedings, fines, attachment, execution or foreclosure by a judgment creditor, may include personal items in the amount of $500, tools of the trade in the amount of $1,500, one motor vehicle in the amount of $4,000, jewelry in the amount of $2,500, clothing, furniture, books, medical-health equipment being used for the health of the person and not for his profession, and any interest in or proceeds from a pension or retirement fund. All exempt items are valued at the market value of used chattels. (42-10-1, 42-10-2.) In addition, certain life, accident and health insurance benefits, beneficiary fund not exceeding $5,000, set apart, appropriated or paid, by any beneficiary fund not exceeding five thousand dollars [($5,000)], set apart, appropriated or paid, by any benevolent association or society, according to its rules, regulations or bylaws, to the family of any deceased member, or to any member of such family, and life insurance proceeds may also be exempt. (42-10-3, 42-10-4, 42-10-5.)
Chapter 42. Actions and Proceedings Relating to Property
Article 10.
Exemptions
§ 42-10-1. Exemptions of married persons or heads of households
Personal property in the amount of five hundred dollars ($500), tools of the trade in the amount of fifteen hundred dollars ($1,500), one motor vehicle in the amount of four thousand dollars ($4,000), jewelry in the amount of twenty-five hundred dollars ($2,500), clothing, furniture, books, medical-health equipment being used for the health of the person and not for his profession and any interest in or proceeds from a pension or retirement fund of every person supporting another person is exempt from receivers or trustees in bankruptcy or other insolvency proceedings, fines, attachment, execution or foreclosure by a judgment creditor. Property exempted shall be valued at the market value of used chattels.
§ 42-10-2. Exemptions of persons who support only themselves
Personal property other than money in the amount of five hundred dollars ($500), tools of the trade in the amount of fifteen hundred dollars ($1,500), one motor vehicle in the amount of four thousand dollars ($4,000), jewelry in the amount of twenty-five hundred dollars ($2,500), clothing, furniture, books, medical-health equipment being used for the health of the person and not for his profession and any interest in or proceeds from a pension or retirement fund of every person supporting only himself is exempt from receivers or trustees in bankruptcy or other insolvency proceedings, executors or administrators in probate, fines, attachment, execution or foreclosure by a judgment creditor. Property exempted shall be valued at the market value of used chattels.
§ 42-10-3. Life, accident, and health insurance benefits
The cash surrender value of any life insurance policy, the withdrawal value of any optional settlement, annuity contract or deposit with any life insurance company, all weekly, monthly, quarterly, semiannual or annual annuities, indemnities or payments of every kind from any life, accident or health insurance policy, annuity contract or deposit heretofore or hereafter issued upon the life of a citizen or resident of the state of New Mexico, or made by any such insurance company with such citizen, upon whatever form and whether the insured or the person protected thereby has the right to change the beneficiary therein or not, shall in no case be liable to attachment, garnishment or legal process in favor of any creditor of the person whose life is so insured or who is protected by said contract, or who receives or is to receive the benefit thereof, nor shall it be subject in any other manner to the debts of the person whose life is so insured, or who is protected by said contract or who receives or is to receive the benefit thereof, unless such policy, contract or deposit be taken out, made or assigned in writing for the benefit of such creditor.
§ 42-10-4. Benefits from benevolent associations
Any beneficiary fund not exceeding five thousand dollars, set apart, appropriated or paid, by any benevolent association or society, according to its rules, regulations or bylaws, to the family of any deceased member, or to any member of such family, shall not be liable to be taken by any process or proceedings, legal or equitable, to pay any debts of such deceased member.
§ 42-10-5. Life insurance proceeds
The proceeds of any life insurance are not subject to the debts of the deceased, except by special contract or arrangement, to be made in writing.
§ 42-10-6. Personal property used as a security under the Uniform Commercial Code is not exempt
A secured creditor who has personal property of the debtor as security as provided by the Uniform Commercial Code may proceed according to the terms of the security instrument and the Uniform Commercial Code. The debtor cannot exempt personal property given to a secured creditor as security unless there be more property than is necessary to pay the debt to the secured creditor. The debtor may claim an exemption out of the surplus.
§ 42-10-7. Taxes and garnishment excepted
This article is not applicable to taxes or garnishment.
§ 42-10-8. Repealed by L. 1979, Ch. 182, § 5
§ 42-10-9. Homestead exemption
Each person shall have exempt a homestead in a dwelling house and land occupied by the person or in a dwelling house occupied by the person although the dwelling is on land owned by another, provided that the dwelling is owned, leased or being purchased by the person claiming the exemption. Such a person has a homestead of sixty thousand dollars ($60,000) exempt from attachment, execution or foreclosure by a judgment creditor and from any proceeding of receivers or trustees in insolvency proceedings and from executors or administrators in probate. If the homestead is owned jointly by two persons, each joint owner is entitled to an exemption of sixty thousand dollars ($60,000).
§ 42-10-10. Exemption in lieu of homestead A.
Any resident of this state who does not own a homestead shall in addition to other exemptions hold exempt real or personal property in the amount of five thousand dollars ($5,000) in lieu of the homestead exemption. B. If the resident does not own a homestead, the sheriff or any other person or officer seeking to attach, execute or foreclose by judgment on property shall provide the resident with written notification of the resident's right to exemption in lieu of homestead as described in Subsection A of this section, together with a simple form by which the resident may designate that the resident is aware of the exemption and does or does not desire to claim the exemption. If the resident refuses to make the election provided for in this section, the sheriff, other person or officer shall proceed to attach, execute or foreclose on the resident's property. If the resident claims the exemption in lieu of homestead, the sheriff, other person or officer making attachment, execution or foreclosure by judgment shall file as part of the return a description, including the resident's stated value, of the property claimed as exempt, bearing the resident's signature witnessed by the sheriff, other person or officer seeking to attach, execute or foreclose.
§ 42-10-11. When homestead exemption does not apply
The provisions of this article do not apply or extend to taxes, garnishment, recorded liens of mortgagees or lessors or recorded liens of laborers or materialmen for labor or materials furnished for the construction or repair of the dwelling house.
§ 42-10-12. Repealed by L. 1979, Ch. 182, § 5
§ 42-10-13. Claim of exemption or priority
Any person desiring to claim that property is exempt from execution or is subject to execution only after other property is used to satisfy a debt under the provisions of Sections 40-3-10 and 40-3-11 NMSA 1978 shall file his claim of exemption or priority in the appropriate court, or the right to claim such exemption is waived as between a spouse and the creditor.
